FLORIDA INSURANCE EXAM STUDY Q&A
214 FLORIDA INSURANCE EXAM 160 QUESTIONS AND CORRECT
ANSWERS GRADED A+ 2026
Which type of insurance protects an agent and even pays claims if a
lawsuit is brought against the agent as a result of failing to provide a
service to a client? - ANSWER- Errors and Omissions Insurance
Which of the following terms is known as the voluntary
relinquishment of a given right or privilege? - ANSWER- Waiver
This Supreme Court case placed the regulation of insurance within the
authority of the federal government by defining insurance as a form of
interstate commerce? - ANSWER- United States v. Southeastern
Underwriters Association (1944)
Tim was just hired today by MAB INC and wants to join the company's
group insurance policy. What period of time is he currently in and
when can he join the plan? - ANSWER- Probationary period, he can
sign up after 90 days
If Justin submitted an initial premium with his life insurance
application, was provided a conditional receipt by the insurance
company and was ultimately issued a policy as applied for, when
would his insurance policy be considered in force? - ANSWER- The
date of his application or the day he completed any required medical
exam
When dividends are issued, the policyowner has the following
dividend options in utilizing a return EXCEPT: - ANSWER- Life Income
Option
,Which two life insurance riders can Bill purchase to guarantee that his
policy will continue without further commitment from him and that
income will be paid to him if he becomes totally and permanently
disabled? - ANSWER- Waiver of premium and Disability Income
Riders
In a contributory group plan, what percentage of eligible employees
must be covered? - ANSWER- 75%
Which statement regarding annuities is CORRECT? - ANSWER-
Variable annuity units are fixed but the annuity payment will vary
according to the value of the annuity unit.
In order to be considered currently insured and thus eligible for
limited survivor benefits from Social Security, a worker must have
earned credits during the 13-quarter period ending with the
quarter in which the worker died. - ANSWER- 6
Social security is also known as: - ANSWER- Old Age Survivors and
Disability Insurance (OASDI)
Insurance is not intended to protect against? - ANSWER- Speculative
Risk
Under a family plan life insurance policy, coverage on the
breadwinner is often provided by which of the following insurance
types? - ANSWER-Whole Life
Which of the following statements regarding annuity settlement or
payout options is NOT true? - ANSWER- If the annuitant dies before
the principal sum is depleted, the Refund Life Annuity Option will pay
the entire annuity amount to the beneficiary in a lump sum payment
or over scheduled installments.
, The following statements regarding 401(k) retirement plans are
correct EXCEPT: - ANSWER- Plans rarely have a matching
contribution component by an employer
All of the statements below pertaining to group life insurance are
correct EXCEPT: - ANSWER- If the insurance coverage is less than
$75,000, employees do not have to report the employer-paid
premiums as income
According to Florida Statues, entering into any agreement to commit
any act of intimidation resulting in the business of insurance is known
as: - ANSWER- Coercion
William, age 67, has owned his life insurance policy for the past 15
years and has mailed his monthly premiums to his life insurance
company. Last month he failed to mail the monthly payment on his
premium due date as well as during his policy's grace period. As a
result, which of the following scenarios will MOST likely occur? -
ANSWER- The insurer will provide notification of impending lapse in
coverage, and allow at least 21 additional days beyond the grace
period to make a payment to prevent the policy from lapse
Before executing an exchange of an annuity contract resulting from a
recommendation to a senior consumer, an insurance agent should
make reasonable efforts to obtain information from the applicant
concerning the suitability of the recommendation on an approved
form, which upon completion, must be signed by the applicant and
agent. Within what period of time must an agent submit this form to
the insurer once it is complete? - ANSWER- Within 10 days
Shelly is considered to be terminally ill and has decided to sell her life
insurance policy in exchange for living benefits to fulfill some final
214 FLORIDA INSURANCE EXAM 160 QUESTIONS AND CORRECT
ANSWERS GRADED A+ 2026
Which type of insurance protects an agent and even pays claims if a
lawsuit is brought against the agent as a result of failing to provide a
service to a client? - ANSWER- Errors and Omissions Insurance
Which of the following terms is known as the voluntary
relinquishment of a given right or privilege? - ANSWER- Waiver
This Supreme Court case placed the regulation of insurance within the
authority of the federal government by defining insurance as a form of
interstate commerce? - ANSWER- United States v. Southeastern
Underwriters Association (1944)
Tim was just hired today by MAB INC and wants to join the company's
group insurance policy. What period of time is he currently in and
when can he join the plan? - ANSWER- Probationary period, he can
sign up after 90 days
If Justin submitted an initial premium with his life insurance
application, was provided a conditional receipt by the insurance
company and was ultimately issued a policy as applied for, when
would his insurance policy be considered in force? - ANSWER- The
date of his application or the day he completed any required medical
exam
When dividends are issued, the policyowner has the following
dividend options in utilizing a return EXCEPT: - ANSWER- Life Income
Option
,Which two life insurance riders can Bill purchase to guarantee that his
policy will continue without further commitment from him and that
income will be paid to him if he becomes totally and permanently
disabled? - ANSWER- Waiver of premium and Disability Income
Riders
In a contributory group plan, what percentage of eligible employees
must be covered? - ANSWER- 75%
Which statement regarding annuities is CORRECT? - ANSWER-
Variable annuity units are fixed but the annuity payment will vary
according to the value of the annuity unit.
In order to be considered currently insured and thus eligible for
limited survivor benefits from Social Security, a worker must have
earned credits during the 13-quarter period ending with the
quarter in which the worker died. - ANSWER- 6
Social security is also known as: - ANSWER- Old Age Survivors and
Disability Insurance (OASDI)
Insurance is not intended to protect against? - ANSWER- Speculative
Risk
Under a family plan life insurance policy, coverage on the
breadwinner is often provided by which of the following insurance
types? - ANSWER-Whole Life
Which of the following statements regarding annuity settlement or
payout options is NOT true? - ANSWER- If the annuitant dies before
the principal sum is depleted, the Refund Life Annuity Option will pay
the entire annuity amount to the beneficiary in a lump sum payment
or over scheduled installments.
, The following statements regarding 401(k) retirement plans are
correct EXCEPT: - ANSWER- Plans rarely have a matching
contribution component by an employer
All of the statements below pertaining to group life insurance are
correct EXCEPT: - ANSWER- If the insurance coverage is less than
$75,000, employees do not have to report the employer-paid
premiums as income
According to Florida Statues, entering into any agreement to commit
any act of intimidation resulting in the business of insurance is known
as: - ANSWER- Coercion
William, age 67, has owned his life insurance policy for the past 15
years and has mailed his monthly premiums to his life insurance
company. Last month he failed to mail the monthly payment on his
premium due date as well as during his policy's grace period. As a
result, which of the following scenarios will MOST likely occur? -
ANSWER- The insurer will provide notification of impending lapse in
coverage, and allow at least 21 additional days beyond the grace
period to make a payment to prevent the policy from lapse
Before executing an exchange of an annuity contract resulting from a
recommendation to a senior consumer, an insurance agent should
make reasonable efforts to obtain information from the applicant
concerning the suitability of the recommendation on an approved
form, which upon completion, must be signed by the applicant and
agent. Within what period of time must an agent submit this form to
the insurer once it is complete? - ANSWER- Within 10 days
Shelly is considered to be terminally ill and has decided to sell her life
insurance policy in exchange for living benefits to fulfill some final
